African Trade Insurance Agency
Political Risk Investment Insurance
Instrument description
The African Trade Insurance (ATI) Agency offers investment insurance against political risks. It serves to protect investments, projects, assets and contracts against risks associated with unlawful or questionable government actions that could lead to payment default and financial loss. ATI considers indemnity and tenors for the political risk investment insurance on a case-by-case basis.
A range of risks are covered:
- Expropriation of assets
- Currency inconvertibility
- Damage or operational issues due to war or civil disturbances
- Contract breach or default on an arbitration award by a host government
- Non-payment by a host government/public institution
- Unilateral cancellation of operating license or contract
- Refused reimbursement for a performance, bid or other pre-paid project bond
- Trade embargoes or sanctions imposed by the Security Council of the UN
Eligible projects and transactions
ATI supports various types of investments, including equity participation in projects or companies and medium- to long-term infrastructure loans.
Eligible regions
A transaction, investment or project must be located in at least one of ATI’s member countries: Benin, Burundi, Côte d’Ivoire, Democratic Republic of Congo, Ethiopia, Kenya, Madagascar, Malawi, Rwanda, South Sudan, Tanzania, Uganda, Zambia and Zimbabwe.
Key features
- Size of coverage: No minimum ceiling. Maximum ceiling including reinsurance is USD 146 million.
- Tenor of coverage: Special facilities are offered for medium- to long-term infrastructure loans. Repayment periods of up to 15 years for project finance and energy projects.
Surety Bonds
Instrument description
The African Trade Insurance (ATI) Agency can provide surety bonds to government agencies and contracting companies for mitigating risks associated with the failure to meet contractual terms. Through this product, counter guarantees can be offered to issuers of bonds—banks and insurance companies will be reimbursed in case the borrowing public entity does not perform as expected. By providing a security with a defined value and maturity date, liquidity risks are reduced for issuers of bonds.
Surety bonds include advance payment bonds, bid bonds, customs and warehousing bonds, performance bonds, retention and maintenance bonds.
Eligible projects and transactions
ATI can cover many types of investments, including medium- to long-term infrastructure loans.
Eligible regions
A transaction, investment or project must be located in at least one of ATI’s member countries: Benin, Burundi, Côte d’Ivoire, Democratic Republic of Congo, Ethiopia, Kenya, Madagascar, Malawi, Rwanda, South Sudan, Tanzania, Uganda, Zambia and Zimbabwe.
Key features
- Size of coverage: No minimum transaction size applies.
- Tenor of coverage: Repayment periods of up to 15 years for project finance and energy projects.
Political Violence, Terrorism and Sabotage Insurance
Instrument description
The African Trade Insurance (ATI) Agency offers insurance against financial losses caused by politically motivated violence, terrorism and sabotage events. The insurance agreement can be signed directly with ATI or with a third-party insurer under a reinsurance contract. The insurance protects against damage to property and loss of income or revenues due to business interruption.
Eligible projects and transactions
Covers a range of investments including medium- to long-term infrastructure loans.
Eligible regions
A transaction, investment or project must be located in at least one of ATI’s member countries: Benin, Burundi, Côte d’Ivoire, Democratic Republic of Congo, Ethiopia, Kenya, Madagascar, Malawi, Rwanda, South Sudan, Tanzania, Uganda, Zambia and Zimbabwe.
Key features
- Size of coverage: No minimum transaction size applies.
- Tenor of coverage: Repayment periods of up to 15 years for project finance and energy projects.
Eligible Countries
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Benin -
Burundi -
Congo, Dem. Rep. -
Cote d'Ivoire -
Ethiopia -
Kenya -
Madagascar -
Malawi -
Rwanda -
South Sudan -
Tanzania -
Uganda -
Zambia -
Zimbabwe